Teachers employed by the Teachers Service Commission (TSC) are set to receive an increased salary in their July payslips following a recent ruling issued by the High Court.
The National Treasury has already allocated a total of sh. 9.1 billion to TSC for the implementation of the July salary increase plan, benefiting over 350,000 teachers and secretariat staff on the payroll.
During the launch of the new e-citizen platform at KICC, President William Ruto announced a salary increment ranging from 7% to 10% for teachers and civil servants, aiming to provide relief to public servants during these challenging economic times.
However, the High Court’s recent order regarding the Finance Bill 2023 adds an interesting dimension to the July salary increase for teachers.
High Court Judge Mugure Thande declined to set aside the orders suspending the Finance Act 2023.
The judge ruled in favor of the petitioners, led by Busia Senator Okiya Omtatah, stating that lifting the orders would negatively impact the public.
The judge also directed that the matter be forwarded to Chief Justice Martha Koome to appoint a three-judge bench to hear and determine the case. Consequently, teachers will receive their July salaries with a 7% salary increment, but without the 1.5% housing fund deduction that was supposed to take effect on July 1, 2023, as per the Finance Act 2023.
As a result of the Court’s order, TSC is prohibited from deducting the 1.5% housing fund contribution from teachers’ payslips. In addition to enjoying an increased net pay, teachers will also have an improved borrowing capacity when applying for check-off loans.
The salary increment, as ordered by the president, will be calculated retroactively from July 1, and its effects will be reflected in the July payslips.
The salary increase for teachers will be 7% in the first financial year (2023-2024), 8% in the second year (2024-2025), 9% in the third year (2025-2026), and 10% in the final year (2026-2027).
However, the Kenya National Union of Teachers (Knut) has expressed dissatisfaction and issued a 14-day ultimatum for TSC to convene a meeting to review the collective bargaining agreement (CBA) signed in 2021.
Knut Secretary-General Collins Oyuu emphasized the need for negotiations, especially in light of the challenging economic situation in the country.